Correlation Between Stratis and Cosmos

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Stratis and Cosmos at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Stratis and Cosmos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratis and Cosmos, you can compare the effects of market volatilities on Stratis and Cosmos and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Stratis with a short position of Cosmos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratis and Cosmos.

Diversification Opportunities for Stratis and Cosmos

0.62
  Correlation Coefficient

Poor diversification

The 3 months correlation between Stratis and Cosmos is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Stratis and Cosmos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos and Stratis is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Stratis are associated (or correlated) with Cosmos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos has no effect on the direction of Stratis i.e., Stratis and Cosmos go up and down completely randomly.

Pair Corralation between Stratis and Cosmos

Assuming the 90 days trading horizon Stratis is expected to generate 1.75 times less return on investment than Cosmos. In addition to that, Stratis is 1.31 times more volatile than Cosmos. It trades about 0.02 of its total potential returns per unit of risk. Cosmos is currently generating about 0.04 per unit of volatility. If you would invest  963.00  in Cosmos on August 30, 2022 and sell it today you would earn a total of  46.00  from holding Cosmos or generate 4.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Stratis  vs.  Cosmos

 Performance (%) 
       Timeline  
Stratis 
Stratis Performance
0 of 100
Over the last 90 days Stratis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Crypto's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for Stratis investors.

Stratis Price Channel

Cosmos 
Cosmos Performance
0 of 100
Over the last 90 days Cosmos has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Cosmos is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cosmos Price Channel

Stratis and Cosmos Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Stratis and Cosmos

The main advantage of trading using opposite Stratis and Cosmos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratis position performs unexpectedly, Cosmos can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cosmos will offset losses from the drop in Cosmos' long position.
Stratis vs. Ethereum
Stratis vs. Cardano
Stratis vs. Avalanche
Stratis vs. Cosmos
The idea behind Stratis and Cosmos pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Cosmos vs. Ethereum
Cosmos vs. XRP
Cosmos vs. Solana
Cosmos vs. Cardano
Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go